Energy market liberalisation The Austrian experience · Renewables Small hydro power (10 MW)...
Transcript of Energy market liberalisation The Austrian experience · Renewables Small hydro power (10 MW)...
1
Energy market liberalisationThe Austrian experience
EPSU ENERGY CONFERENCE4th of november 2005
BrusselsPresented by Gunda Kirchner, researcher Austrian
Arbeitkammer, Vienna
Seite 2Chamber of labour
Represents the interests of 3 million employees and consumers in Austria.
Main tasks:
Fundamental research for the benefit of workers and consumers Participation in and control of legislation Direct Services for the members:
• individual consultation, • legal assistence in labour-law disputes
Seite 3Content
1. Liberalisation of the energy markets
2. Regulation structure
3. Structure and development of energy prices
4. Effects on employment
5. Security/quality of supply
Seite 4Content
1. Liberalisation of the energy markets
2. Regulation structure
3. Structure and development of energy prices
4. Effects on employment
5. Security/quality of supply
Seite 5European market opening 1996
National application up to february1999
Market opening for wholesale customers with annual need of 9 GWh
Regulated or negotiated access
Unbundling of accounts for TSO‘s from other business areas
Independent body to handle disputs about grid access
Seite 6Austrian electricity market opening19. february 1999
40
20
9regulated grid access
Independent mediation for grid access
Industrial consumers
19.2.1999
19.2.2000
19.2.2003
Seite 7Austrian electricity market opening 1st of october 2001
All consumers
Austrian Regulator
Seite 8European acceleration 2004
Market opening for all consumers per 1.7.2007Legal unbundling for vertical integrated firms with more than 100.000 connected customers up to 1.7.2007Added measures for consumer protection, to reach higher transparence in particularProvider of last resort
Seite 9
Electricity market opening EU-25in TWh and percent
050
100150200250300350400450500D
euts
chla
nd
Gro
ßbrit
anni
Spa
nien
Sch
wed
en
Nor
weg
en
Nie
derla
nde
Finn
land
Öst
erre
ich
Por
tuga
l
Dän
emar
kB
elgi
en
Italie
n
Lettl
and
Slo
wen
ien
Fran
krei
ch
Ung
arn
Slo
wak
ei
Grie
chen
lan
Luxe
mbu
rg
Irlan
d
Pol
en
Tsch
echi
enZy
pern
Est
land
in Prozentin TWh
S.: EU
Seite 10Gas market opening EU-25 in bcm and percent
S: EU
020406080
100120
Gro
ßbrit
anni
enD
euts
chla
ndIta
lien
Nie
derla
nde
Spa
nien
Öst
erre
ich
Dän
emar
kS
chw
eden
Est
land
Slo
wen
ien
Bel
gien
Irlan
dLu
xem
burg
Fran
krei
chU
ngar
nP
olen
Slo
wak
ei
Percentbcm
Seite 11What‘s the matter now in Austria?
LLegal unbundling for distributors of gas in 2002, for electricity by 1.1.2006 !!
AAdded transparence for household consumers
PProvider of last resort
Seite 12Content
1. Liberalisation of the energy markets
2. Regulation structure
3. Structure and development of energy prices
4. Effects on employment
5. Security/quality of supply
Seite 13The Regulation bodymain responsibilities
1. Minister of economic affairs:= supreme federal authority for energy affairs
2. Energie-Control GmbH (=ltd.): Manager is bound by the instructions of 1. and office of 3.monitoring and controlling; statistics; comparison of tariffs; competition monitoring; mediation
3. Energie-Control Comission: independent regulation body, 3 persons – authorised by the
government, no direct control mechanismgrid tariffs; disputs about grid access – mediation;
4. Advisory council for electricity and gas:Members are e.g. representatives of market participantsAdvises on grid tarifs; terms of contract – distributors, all legal proposals of the regulator and the minister concerning energy
– e.g. renewables
Seite 14Regulatordecreased grid tariffs
Electricity:
430 mio € from 2 billions € since 2001
Gas:
32 mio € from 450 mio € since 2002
Seite 15Content
1. Liberalisation of the energy markets
2. Regulation structure
3. Structure and development of energy prices
4. Effects on employment
5. Security/quality of supply
Seite 16The electricity costs
Capacity and workNetwork loss
Network access Etc.
+
+
Electricity price Grid tariff
RenewablesSmall hydro power (10 MW)Combined heat and power
Stranded costs Electricity tax
20%VAT
Taxes and fees
Seite 17Electricity price structure – household3500 kWh per year
25%
46%
12%
17%energy pricegrid tarifftaxes and fees20% VAT
Seite 18
Development of household prices electricity, gas, district heating
Austria
90
95
100
105
110
115
120
125
Jän.0
0Mai.
00Sep
.00Jä
n.01
Mai.01
Sep.01
Jän.0
2Mai.
02Sep
.02Jä
n.03
Mai.03
Sep.03
Jän.0
4Mai.
04Sep
.04Jä
n.05
pric
e in
dex
(100
= a
vera
ge 2
000) GAS
DISTRICT HEATING
ELECTRICITY
Q.: EVA
Seite 19Electriciy prices household EU-25
A
AT: full liberalisation
S: EU
Seite 20
Electricity cost structureindustrial customer
grid level 3, 265 GWh
grid tariff21%
electricity price63%
Stranded Costs 1%
energy tax, net2%
supplements for res, shp, chp
13%
Seite 21Cost structure industrial customer24 GWh per year
S: EU
Seite 22Cost structure industrial customer 50 GWh per year
S: EU
Seite 23Content
1. Liberalisation of the energy markets
2. Regulation structure
3. Structure and development of energy prices
4. Effects on employment
5. Security/quality of supply
Seite 24Employment in the Austrian electricity sector
1995 1998 2003
30.70028.500
23.000
0
5.000
10.00015.000
20.00025.00030.000
35.000
-2.200 -5.500
2001: full liberalisation of the Austrian electricity market
1996: First EU-directive
1999: National adoption
S: Statistik Austria, Forba, AK
Seite 25Employment in the Austrian gas sector
2366 2370
2020 2070
1800
1900
2000
2100
2200
2300
2400
2000 20012002 2003Oct 2002: fully market
opening gas
S: Statistik Austria, Forba, AK
Seite 26Employment in liberalised infrastructures
The main objective is to reduce the labour costsAbout 50 % of all employees are loosing their jobs within the first 10 years of market opening or privatisationMore jobs are cut by the incumbents than created by new (private) firms in the sectorNew jobs are worse – less money, new income structure e.g. performance related pay componentsShortened brake hours and rest periodsFlexibilisation of working hoursOutsourcingMuch more stress and uncertainty for the employeesIncreasing untypical and precarious jobsWorsened conditions for trade union
Seite 27Content
1. Liberalisation of the energy markets
2. Regulation structure
3. Structure and development of energy prices
4. Effects on employment
5. Security/quality of supply
Seite 28Annual non-availability of electricity unplanned
Seite 29Annual non-availability of electricity in Austria – unplanned
Minutes per year / medium voltage
Seite 30Annual non-availability of electricityplanned and un-planned
Seite 31Services of public interest
Legal obligation to connect the customers, but no legal obligation for supply
No Provider of last resort
No special protection for vulnerable consumers
☺ Regulator is the mediation body for any conflicts between consumers and energy enterprises
Seite 32Austrian perspectives by 1.1.2006
•Incentive regulation modell 1.1.2006 for electricity distributors
•Legal Unbundling 1.1.2006 for electricity distributors
Seite 33Conclusion
Need for "better regulation" in the sence of general economic welfare:
Political independence of the regulator ?
How to set political incentives for the regulation • quality of supply in general• qualitiy of the grid • employment • services of public interest
Is competition more important than security of supply?
Seite 34Thank you !
Gunda Kirchner
++ 43 (0)1 501 65 – 2224
Email:[email protected]
Web:wien.arbeiterkammer.athttp://eu.arbeiterkammer.at/www-2007.html